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Asian Journal of Research in Business Economics and Management
Year : 2013, Volume : 3, Issue : 10
First page : ( 263) Last page : ( 273)
Online ISSN : 2249-7307.

An Empirical Study on the Pattern of Financing of North East Development Finance Corporation Limited (NEDFi) With Special Reference to Assam

Goswami Jublee*, Bardoloi Gopal**

*Assistant Professor, L.C.B. College, Guwahati, Assam, India

**Associate Professor, Handique Girls’ College, Guwahati, Assam, India

Online published on 4 October, 2013.

Abstract

The North East Development Finance Corporation Limited (NEDFi) a pioneer development finance institution (DFI) of the north east India was proposed to be established in 1994–95 and the organisation started to function from 1995–96. The northeast region despite being rich in resources is lagging behind in industrial development compared to the rest of the country. It was accordingly felt that a DFI especially for this region could provide for the requirements of this region. The present study therefore tries to analyze whether NEDFi has succeeded in the purpose of its initiation, i.e. to fill the resource gap experienced by the northeastern states in their attempt to industrialize and develop. The motivation behind the study is to analyze the performance of NEDFi that is an important DFI of northeast India. The evaluation of the performance of DFIs has several benefits, the main one being its potential impact on government and management decision-making. This is especially so in an era, when such institutions are soon eliminated from the scene. The study evaluates the pattern of sanctions and disbursement of NEDFi among the northeastern states and compares the trend of its sanctions to Assam vis-à-vis the all India Development Banks namely, IDBI, IFCI, IIBI, ICICI and SIDBI for the period 1991–92 to 2009–10. The study concludes that, NEDFi have not been performing requiredly for rectifying the regional development imbalance, and, therefore, for furthering the government's agenda for the regional redistribution of economic power.

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Keywords

NEDFi, development finance institution, development banks.

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